Over the weekend, a news report indicated that the ministry of investment, trade and industry (MITI) had imposed terms on BYD for its CKD local assembly plans, terms that the Chinese conglomerate could not agree to.
According to the report, it is understood that the requirement as set by MITI would involve BYD exporting as much as 80% of the cars produced in Tanjung Malim, with the remaining 20% of production to be vehicles priced at above RM200,000 per unit.
As you would expect, the topic has been hot news, creating various discussions on the web and social media. Given the lack of details on the matter, much has been left to speculation and filling up the gaps with whatever conjecture possible.
In response to the claims and confusion circulating on social media regarding MITI’s conditions for BYD’s manufacturing license, as well as other related automotive policies, the ministry has issued a press statement to explain the matter.
The following is the ministry’s statement in verbatim (with one typo correction and date format adjustment as per our house-style), with the salient points of address left as tables in the images, for easier reading:
MITI REAFFIRMS COMMITMENT TO SUSTAINABLE AUTOMOTIVE GROWTH; CLARIFIES INVESTMENT AND SECTOR POLICIES
Malaysia is grateful for the confidence that BYD and other global EV manufacturers have shown in our country. The decision by investors to establish operations at KLK TechPark in Tanjong Malim is a significant vote of confidence in Malaysia’s industrial ecosystem and long-term growth potential. It is Malaysia’s genuine desire to welcome world-class manufacturers including BYD, not only for vehicle assembly but to participate across the full automotive value chain, from component manufacturing and R&D through to logistics and after-sales, as we develop into a comprehensive and globally competitive automotive hub.
Notwithstanding the above, our national automakers, Proton-Geely and Perodua-Daihatsu, together account for over 63% of local vehicle sales and support an ecosystem of more than 700,000 employees, contributing approximately 4% of Malaysia’s GDP annually. The depth of their localisation is not incidental; it is the result of decades of deliberate investment. Perodua-Daihatsu maintains a localisation rate of over 75% on its mainstream models and Proton-Geely at 76% in 2025.
In the case of Proton-Geely, they have developed 18 new technologies through its localisation programme including joint ventures in fuel pumps, electronic gearshift modules and CVT transmissions. Together, Proton and Perodua have channelled billions into the Malaysian vendor ecosystem, supporting thousands of SMEs, skilled employees, and communities across the country. This is the industrial standard we are working to replicate.
In response to a number of claims and confusion circulating on social media regarding MITI’s conditions for BYD’s Manufacturing License and related automotive policies, we wish to clarify this in the tables below:
Malaysia also wishes to reaffirm that it remains genuinely open to Chinese automotive investment. As at December 2025, out of 34 foreign automotive brands in the market, 14 are Chinese brands including BYD, Chery, Jaecoo, Jetour, Haval, Wey, MG and Volvo. BYD itself was granted an interim Manufacturing License on September 29, 2025. Chery Automobile Co. Ltd was also granted a Manufacturing License by MITI on June 26, 2025, making it another Chinese automaker to receive formal approval to manufacture vehicles locally.
These approvals demonstrate that our policy framework is not a barrier to entry, it is a framework for meaningful, high-value participation from foreign investors. MITI further wishes to emphasise that these policies are developmental in nature, transitioning Malaysia towards advanced manufacturing.
Under the National Automotive Policy 2020 and the New Industrial Master Plan 2030, our declared goal is to become a regional production and export hub for Next Generation Vehicles. We have over 592 specialised automotive vendors, and a skilled technical workforce to support world-class EV manufacturing. Malaysia stands ready to partner with manufacturers who come here not only to serve our domestic market, but to build for the world and our policy framework is designed precisely to enable and accelerate that ambition.
Malaysia has a long and proven track record as a destination for high-quality foreign automotive investment. The TechPark and the surrounding Automotive High-Tech Valley form an established industrial corridor with a deep network of suppliers, engineering talent, and infrastructure purpose-built for next-generation vehicle production.
Global names including Mercedes-Benz, Volvo, and Stellantis (Peugeot) have chosen Malaysia as their regional assembly base, and most recently, Chery Automobile Co. Ltd has commenced construction of its manufacturing plant at the Beringin High-Tech Automotive Valley under the same framework conditions, further affirming international confidence in Malaysia as a serious EV manufacturing destination.
Malaysia’s location at the heart of ASEAN provides access to a regional market of over 600 million consumers, extended further by 17 free trade agreements that open global markets to vehicles assembled here. Our workforce is technically capable, English-speaking, and experienced in precision manufacturing. Our regulatory environment, while demanding on standards, is stable, transparent, and consistently applied. For manufacturers serious about a long-term, export-oriented presence in Southeast Asia, Malaysia remains one of the most compelling destinations in the region.
Malaysia remains open for any potential investors and businesses coming into Malaysia. We invite all global automotive manufacturers including Chinese brands, to grow with us, not only as a market but as a manufacturing and export base. Our policies are not about closing doors, they are about ensuring that every investment creates deep local value, technology transfer and sustainable jobs. We look forward to working with partners who share that vision.
Minister of Investment, Trade and Industry
March 31, 2026
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AI-generated Summary ✨
Comments express frustration over the RM100k floor price for CKD EVs, viewing it as protectionism that limits affordable options and benefits only certain local manufacturers. Many criticize MITI's unclear policies and perceived protection of national carmakers, especially Proton and Perodua, hindering competition from Chinese brands like BYD. Several commenters highlight the potential of EVs for Malaysia’s future and lament missed opportunities for cheaper, better options like Wuling or Chery. Overall, sentiments are negative toward government policies that restrict EV affordability and market growth.